Investigations Uncover $28 Billion in Crypto-Related Crime

Recent investigations have revealed that the cryptocurrency industry is entangled with at least $28 billion tied to illicit activity. According to a comprehensive examination by the International Consortium of Investigative Journalists, The New York Times, and other global media partners, this money has flowed into major cryptocurrency exchanges from hackers, thieves, and extortionists.

The report outlines that these funds are linked to criminal enterprises worldwide, including North Korean hackers, Chinese and Russian criminal gangs, and Mexico's Sinaloa drug cartel. The data shows that major exchanges like Binance, OKX, and Coinbase have received substantial amounts of this dirty money, raising serious questions about their compliance with anti-money laundering regulations.

The investigation dubbed 'The Coin Laundry' illustrates how these exchanges provide tools that criminals exploit to launder proceeds from scams and thefts. It emphasizes the challenges regulators face in keeping pace with a rapidly evolving financial system that thrives on anonymity and speed.

For instance, the analysis highlighted that Binance participated in a $2 billion business deal with former President Trump's crypto firm, while also processing hundreds of millions in transactions related to criminal activities.

The ICIJ's findings point to a disturbing trend where exchanges, despite being aware of their involvement with illicit funds, continue to benefit financially without sufficient oversight or accountability.

Some exchanges, like OKX and KuCoin, have claimed to be taking compliance seriously, yet the volume of illicit funds moving through their platforms suggests inadequate measures to combat money laundering.

Notably, the report revealed that between July 2024 and July 2025, Binance accounts received approximately $408 million in tether from Huione Group, a financial firm labeled a primary money laundering concern by the U.S.

Treasury. Despite ongoing legal scrutiny, including guilty pleas from Binance and OKX for operating without adequate safeguards, the flow of illicit funds has persisted. This highlights the need for stronger regulatory frameworks and enforcement mechanisms to address the rampant misuse of cryptocurrency systems.

The cryptocurrency landscape has transformed significantly since its inception, evolving from a niche technology into a multi-trillion-dollar industry. However, the findings from these investigations underscore the urgent need for more stringent regulatory measures to protect consumers and limit the capacity for criminal enterprises to exploit this financial ecosystem.